James B
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Do not listen to the person that said to get a CD.
The best long term investment by far is to invest the 2000 pounds in the stock market.
You will be investing for the long term and through history there has been no safer and bigger return then from the Stock Market. I would invest the money in an Index Tracker as these have the lowest fees. Such a fund will average around 12% per year, far greater then anything else.
It is a very good idea what you are doing. |
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b1uecee
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there are lots of schemes for such a investment your talking about. you can contact norwich union or other banks but i would like to suggest you buy premium bonds for the child. no risk and you may win some thing and if you are not happy you can sell them back and get the full amount of money you paid back. |
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Mumofthree
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Hi there area lot of good interest accounts out now but one thing I would recommend its that they learn how to save too- give them pocket money that is intended to go into a bank or building society account and let them see how it grows teaching them to save will be a good lesson for their future. |
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derobake
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It depends on his/your time horizon. The longer you have until the money will be spended, the more risk you can take on.
In General:
- If your goal is less than 2 years away, use a money market account.
- If your goal is 2 - 7 years away, use a bond fund with a duration that is equal to or less than the time horizon.
- If your goal is > 7 years away, you can use a mutual fund that mixes stocks and bonds.
As you move closer to your goal, become more conservative. The key is the ratio of stocks to bonds. In general, as you get closer to the goal, use more bonds and less stocks.
My eBook might be of some help, although it is geared more towards retirement investing. http://www.invest-for-retirement.com |
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Shang B
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Besides all the financial instruments...the next best thing is to educate your grand child...as he/she will sooner or later grow up and acquires the money...
some good wealth building advice in the blog below.. |
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fudge
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What about the child trust funds. Halifax have a monthly savings account fixed for a year at 10% for children. Tying it until 21 will be a bit difficult unless you take a long term bond that wont mature until they are 21.
Premium bonds are not a good idea. 4 years ago we put £2000 into premium bonds and after 2 years only won £50 would have done better in a savings account. We cashed them in and put into an ISA which anyone over 16 can have. |
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bess
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premiun bonds in the uk. u sound like a sweet granny! |
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PETER M
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my bank account lol.
only joking i find that hsbc bank do some decent accounts for kids i use them for my kids account and find them very helpful and they go through every thing with you to find the right one they are really good but its up to you just go round different banks and ask what they can do and what they got to offer |
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BIG D
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In the Nationwide Building Society.
Any account will do.
Periodically withdraw some to buy booze and fags and wild,wild women.
When he is 21 tell him what you have done and explain to him that he must stand on his own 2 feet as you had to at his age. |
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xyz
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the safest is likely to be a CD account (little growth) or perhaps mutual funds (semi risky) or government treasuries and bonds (very safe) |
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danielrutherford
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I would put them in Premium Bonds. Never know, you may end up doubling it or even more!! |
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